Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CLW | |
Entity Registrant Name | CLEARWATER PAPER CORP | |
Entity Central Index Key | 0001441236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,515,156 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 428,779 | $ 436,952 | ||
Costs and expenses: | ||||
Cost of sales | (384,246) | (392,433) | ||
Selling, general and administrative expenses | (30,171) | (32,980) | ||
Total operating costs and expenses | (414,417) | (425,413) | ||
Income (loss) from operations | 14,362 | 11,539 | ||
Interest expense, net | (8,486) | (8,020) | ||
Non-operating pension and other postretirment benefit (costs) income | (1,314) | (1,279) | ||
Earnings (loss) before income taxes | 4,562 | 2,240 | ||
Income tax provision | (725) | 360 | ||
Net earnings (loss) | $ 3,837 | $ 2,600 | ||
Net earnings per common share: | ||||
Basic (in dollars per share) | $ 0.23 | $ 0.16 | ||
Diluted (in dollars per share) | $ 0.23 | $ 0.16 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net earnings | $ 3,837 | $ 2,600 |
Defined benefit pension and other postretirement employee benefits: | ||
Amortization of actuarial loss included in net periodic cost, net of tax of $442 and $617 | 1,239 | 1,728 |
Amortization of prior service credit included in net periodic cost, net of tax of $- and $(110) | 0 | 309 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, after Tax | 1,239 | 1,419 |
Other comprehensive income (loss), net of tax | 1,239 | 1,419 |
Comprehensive income | $ 5,076 | $ 4,019 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amortization of actuarial loss included in net periodic cost, tax expense | $ 442 | $ 617 |
Amortization of prior service credit included in net periodic cost, tax benefit | $ 0 | $ (110) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 12,160 | $ 22,484 |
Restricted cash | 1,440 | 0 |
Receivables, net | 168,093 | 145,519 |
Taxes receivable | 6,981 | 6,301 |
Inventories | 285,909 | 266,244 |
Other Assets, Current | 12,237 | 3,399 |
Total current assets | 486,820 | 443,947 |
Property, plant and equipment, net | 1,292,002 | 1,269,271 |
Operating Lease, Right-of-Use Asset | 77,479 | 0 |
Goodwill | 35,074 | 35,074 |
Intangible assets, net | 22,295 | 24,080 |
Other assets, net | 14,608 | 15,746 |
TOTAL ASSETS | 1,928,278 | 1,788,118 |
Current liabilities: | ||
Line of Credit, Current | 202,000 | |
Accounts payable and accrued liabilities | 295,574 | 321,032 |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 |
Total current liabilities | 515,220 | 449,295 |
Long-term debt | 671,484 | 671,292 |
Operating Lease, Liability, Noncurrent | 72,647 | 0 |
Liability for pensions and other postretirement employee benefits | 76,507 | 78,191 |
Other long-term obligations | 33,859 | 38,977 |
Accrued taxes | 3,111 | 2,785 |
Liabilities | 1,496,034 | 1,361,722 |
Stockholders' equity: | ||
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | 0 | 0 |
Common stock, par value $0.0001 per share, 100,000,000 authorized shares -16,515,156 and 16,482,345 shares issued | 2 | 2 |
Additional paid-in capital | 7,175 | 6,403 |
Retained earnings | 491,176 | 487,339 |
Accumulated other comprehensive loss, net of tax | (66,109) | (67,348) |
Total stockholders' equity | 432,244 | 426,396 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,928,278 | $ 1,788,118 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,515,156 | 16,482,345 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Repayments of Short-term Debt | $ 198,979 | $ 73,825 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,627 | 13,071 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | 3,837 | 2,600 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 25,836 | 25,167 |
Deferred tax expense | 914 | (240) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (564) | 648 |
Changes in working capital, net | (62,131) | 1,244 |
Change in taxes receivable, net | (680) | 1,463 |
Other Operating Activities, Cash Flow Statement | 2,561 | (803) |
Net cash provided by operating activities | (29,399) | 30,860 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to plant and equipment | (71,588) | (48,430) |
Payments for (Proceeds from) Other Investing Activities | 0 | 768 |
Net cash used for investing activities | (71,588) | (47,662) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment of tax withholdings on equity-based payment arrangements | (400) | |
Proceeds from (Payments for) Other Financing Activities | (716) | (365) |
Net cash (used for) provided by financing activities | 90,667 | 13,135 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (10,320) | (3,667) |
Cash at beginning of period | 22,484 | |
Cash at end of period | 12,160 | 12,064 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 15,147 | 13,927 |
Cash paid for income taxes | 19 | 142 |
Cash received from income tax refunds | 190 | 1,873 |
Changes in accrued plan and equipment | (28,443) | 1,317 |
Non-cash additions to plant, property, and equipment | 493 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES: | ||
Share-based Compensation | $ 828 | $ 781 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | AOCI Attributable to Parent [Member] | Common Stock [Member] | Retained Earnings [Member] | Additional Paid-in Capital [Member] |
Shares, Outstanding | 16,448 | ||||
Stockholders' Equity Attributable to Parent | $ 575,434 | $ (43,983) | $ 2 | $ 618,254 | $ 1,161 |
Net Income (Loss) Attributable to Parent | 2,600 | 2,600 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 13 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1,267 | 1,267 | |||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | (12,852) | 12,852 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,419) | 1,419 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 442 | ||||
Shares, Outstanding | 16,461 | ||||
Stockholders' Equity Attributable to Parent | 580,720 | (55,416) | $ 2 | 633,706 | 2,428 |
Shares, Outstanding | 16,482 | ||||
Stockholders' Equity Attributable to Parent | 426,396 | (67,348) | $ 2 | 487,339 | 6,403 |
Net Income (Loss) Attributable to Parent | 3,837 | 3,837 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 33 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 772 | 772 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,239) | 1,239 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 507 | ||||
Shares, Outstanding | 16,515 | ||||
Stockholders' Equity Attributable to Parent | $ 432,244 | $ (66,109) | $ 2 | $ 491,176 | $ 7,175 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation GENERAL Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer relationships through quality and service. In the second half of 2017, we began a review of our selling, general and administrative cost structure as part of our effort to maintain our longer-term competitiveness. As a result of this review, in the fourth quarter of 2017 we began executing on a plan that reduced selling, general and administrative expenses beginning in 2018. For the three months ended March 31, 2018, we incurred $5.1 million of expenses associated with these efforts, which consisted primarily of severance and professional services expenses. We did not incur expenses associated with these efforts in the first quarter of 2019 as the plan implementation was substantially complete in 2018. FINANCIAL STATEMENT PREPARATION AND PRESENTATION The accompanying Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 , and the related Consolidated Statements of Operations, Comprehensive Income, Cash Flows and Stockholders' Equity for the three months ended March 31, 2019 and 2018 , have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. We believe that all adjustments necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities and Exchange Commission, or SEC, on March 18, 2019. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows. (In thousands) March 31, 2019 March 31, 2018 Cash and cash equivalents $ 12,160 $ 12,064 Restricted cash 1,440 — Restricted cash included in other assets, net 1,027 1,007 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 14,627 $ 13,071 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,715.2 million and $1,691.7 million at March 31, 2019 and December 31, 2018 , respectively. For the three months ended March 31, 2019 , we capitalized $3.2 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.2 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the three months ended March 31, 2018, we capitalized $1.0 million of interest expense associated with the Shelby paper machine and $0.3 million of interest expense associated with the continuous pulp digester project. We review the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize . Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of March 31, 2019 and December 31, 2018 , we had allowances for doubtful accounts of $1.7 million and $1.5 million , respectively. Refer to Note 14, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the three months ended March 31, 2019, $29.6 million of receivables were sold under the Account Purchase Agreement. As of March 31, 2019, $16.6 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line item in the operating activities section of the Consolidated Statements of Cash Flows. For the three months ended March 31, 2019, we recorded factoring expense on sales of receivables of less than $0.1 million , which is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. As of March 31, 2019 and December 31, 2018, we had collected $12.7 million and $4.9 million of cash, respectively, from customers that had not yet been remitted to the third-party financial institution. SUPPLY-CHAIN FINANCING We have entered into supply-chain financing programs with financial intermediaries, which provide certain of our vendors the option to be paid by the financial intermediaries on our trade payables earlier than the due date on the applicable invoice. When a vendor receives an early payment on a trade payable it invoiced us for from a financial intermediary, we pay that financial intermediary the face amount of the invoice on the regularly scheduled due date. If we reimburse these vendors for certain fees they may incur in connection with receiving an early payment on an invoice, the amount of such invoice that would have otherwise been included in our trade payables is included in our short term debt. As of March 31, 2019 and December 31, 2018, $10.2 million and $20.8 million, respectively, was included in “Short-term debt” on our Consolidated Balance Sheets related to invoices for which we had reimbursed our vendors’ fees. DERIVATIVES We had no activity during the three months ended March 31, 2019 and 2018 that required hedge or derivative accounting treatment. To help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of March 31, 2019 , these contracts covered approximately 25% of our expected average monthly natural gas requirements for the remainder of 2019 . Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Recently Adopted and New Accoun
Recently Adopted and New Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and New Accounting Standards | Recently Adopted and New Accounting Standards Recently Adopted On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842. The new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The adoption of Topic 842 had a material impact on our Consolidated Balance Sheet due to the recognition of right-of-use assets of $82.5 million and lease liabilities of $87.7 million , respectively, as of January 1, 2019. The difference between these lease assets and lease liabilities represents existing deferred rent balances that were reclassified on the balance sheet. The adoption of Topic 842 did not have a material impact on our Consolidated Statement of Operations or our Consolidated Statement of Cash Flows. We will continue to report periods prior to January 1, 2019 under prior guidance as outlined in Accounting Standards Codification Topic 840, " Leases. " Refer to Note 4, "Leases," for further discussion. New Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) . This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. Amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. We do not believe this ASU will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for defined benefit and other postretirement plans. This ASU eliminates certain disclosures associated with accumulated other comprehensive income, plan assets, related parties, and the effects of interest rate basis point changes on assumed health care costs, with other disclosures being added to address significant gains and losses related to changes in benefit obligations. This ASU also clarifies disclosure requirements for projected benefit and accumulated benefit obligations. The amendments in this ASU are effective for fiscal years ending after December 15, 2020, with early adoption permitted and adoption on a retrospective basis for all periods presented required. We are currently assessing the timing of our adoption of this ASU and do not believe it will have a material impact on our consolidated financial statements beyond updating footnote disclosures. We reviewed all other new accounting pronouncements issued in the period and concluded that they are not applicable to our business. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Pulp, paperboard and tissue products $ 176,788 $ 159,499 Materials and supplies 90,470 86,892 Logs, pulpwood, chips and sawdust 18,651 19,853 $ 285,909 $ 266,244 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. Leases Our adoption of ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight. We have operating leases for manufacturing, office, warehouse and distribution space, paperboard sheeting and chipping facilities, equipment, and vehicles. We also have finance leases related to our North Carolina converting and manufacturing facilities, as well as for certain office and other equipment. We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate, or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. Our leases have remaining lease terms from 1 year to 12 years , and some of our leases include one or more options to renew. Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of March 31, 2019, we did not have any short-term leases. Certain of our leases contain lease and non-lease components that are treated as a single lease component. Our variable lease costs include these non-lease components, which primarily consist of expenses for common area maintenance, taxes, and insurance. For the three months ended March 31, 2019, sublease income was immaterial to the financial statements. The tables below present financial information associated with our leases. This information is only presented as of, and for the three months ended, March 31, 2019. As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. LEASE EXPENSE Three Months Ended (In thousands) March 31, 2019 Operating lease costs $ 3,480 Finance lease costs: Amortization of right-of-use assets 415 Interest on lease liabilities 472 Total finance lease costs 887 Variable lease costs 219 Total lease costs $ 4,586 SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended (In thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,097 Operating cash flows from finance leases 472 Financing cash flows from finance leases 289 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 75 Finance leases 493 SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification March 31, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 77,479 Finance lease assets Property, plant and equipment, net 16,695 Total lease ROU assets $ 94,174 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,097 Current finance lease liabilities Accounts payable and accrued liabilities 1,365 Total current lease liabilities 13,462 Non-current operating lease liabilities Operating lease liabilities 72,647 Non-current finance lease liabilities Other long-term obligations 21,692 Total non-current lease liabilities 94,339 Total lease liabilities $ 107,801 LEASE TERM AND DISCOUNT RATE March 31, 2019 Weighted average remaining lease term (years) Operating leases 7.4 Finance leases 11.3 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets at the balance sheet dates comprise the following: March 31, 2019 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (36,978 ) $ 19,475 Trade names and trademarks 7.4 6,786 (4,286 ) 2,500 Other intangibles 6.0 572 (252 ) 320 $ 63,811 $ (41,516 ) $ 22,295 December 31, 2018 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (35,469 ) $ 20,984 Trade names and trademarks 7.4 6,786 (4,029 ) 2,757 Other intangibles 6.0 572 (233 ) 339 $ 63,811 $ (39,731 ) $ 24,080 For the three months ended March 31, 2019 and 2018 , intangible assets amortization expense was $1.8 million and $2.0 million , respectively. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes | Income Taxes Consistent with authoritative guidance, our estimated annual effective tax rate is used to allocate expected annual income tax expense to interim periods. The rate is the ratio of estimated annual income tax expense to estimated pre-tax ordinary income, and excludes "discrete items," which are significant, unusual or infrequent items reported separately net of their related tax effect. The estimated annual effective tax rate is applied to the current interim period's ordinary income to determine the income tax expense allocated to the interim period. The income tax effects of discrete items are then determined separately and recognized in the interim period in which the income or expense items arise. Our estimated annual effective tax rate applied to the first quarter of 2019 is approximately 6% , compared with approximately 25% for the comparable interim period in 2018. The decrease in the rate is due to an increase in the benefit from tax credits in the current year. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Trade accounts payable $ 198,289 $ 228,059 Accrued wages, salaries and employee benefits 29,549 41,426 Lease liabilities 13,462 — Accrued account purchase agreement liabilities 12,664 4,885 Accrued utilities 8,561 6,934 Accrued taxes other than income taxes payable 7,789 6,243 Accrued discounts and allowances 7,230 8,143 Accrued interest 7,175 14,672 Other 10,855 10,670 $ 295,574 $ 321,032 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Line of Credit Facility [Line Items] | |
Debt | REVOLVING CREDIT FACILITIES As of March 31, 2019 , there was an aggregate of $302.0 million in borrowings outstanding under the credit facilities and $7.5 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2018 , there was an aggregate of $200.0 million in borrowings outstanding under the credit facilities. Our borrowings outstanding under the revolving credit facilities as of March 31, 2019 consisted of $202.0 million of short-term base and LIBOR rate loans classified as current liabilities that are included in "Short-term debt" in our Consolidated Balance Sheet and $100.0 million of fixed rate, three-year borrowings classified as a non-current liability that are included in "Long-term debt" in our Consolidated Balance Sheet. As of March 31, 2019 , we would have been permitted to draw an additional $90.5 million under the credit facilities. Debt REVOLVING CREDIT FACILITIES As of March 31, 2019 , there was an aggregate of $302.0 million in borrowings outstanding under the credit facilities and $7.5 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2018 , there was an aggregate of $200.0 million in borrowings outstanding under the credit facilities. Our borrowings outstanding under the revolving credit facilities as of March 31, 2019 consisted of $202.0 million of short-term base and LIBOR rate loans classified as current liabilities that are included in "Short-term debt" in our Consolidated Balance Sheet and $100.0 million of fixed rate, three-year borrowings classified as a non-current liability that are included in "Long-term debt" in our Consolidated Balance Sheet. As of March 31, 2019 , we would have been permitted to draw an additional $90.5 million under the credit facilities. |
Other Long-Term Obligations
Other Long-Term Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Obligations | Other Long-Term Obligations Other long-term obligations at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Finance lease obligations, net of current portion $ 21,692 $ 21,589 Deferred proceeds 4,350 4,511 Deferred compensation 3,912 2,585 Other 3,905 10,292 $ 33,859 $ 38,977 |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | Pension and Other Postretirement Employee Benefit Plans The following table details the components of net periodic cost of our company-sponsored pension and other postretirement employee benefit, or OPEB, plans for the periods presented: Three Months Ended March 31, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 550 $ 434 $ 25 $ 48 Interest cost 3,121 3,000 647 607 Expected return on plan assets (4,135 ) (4,254 ) — — Amortization of prior service cost (credit) — — — (419 ) Amortization of actuarial loss (gain) 1,909 2,570 (228 ) (225 ) Net periodic cost $ 1,445 $ 1,750 $ 444 $ 11 During the three months ended March 31, 2019 and 2018 , we made no contributions to our qualified pension plans. We do not expect, nor are we required, to make contributions in 2019 . During the three months ended March 31, 2019 , we made contributions of $0.1 million to our company-sponsored non-qualified pension plan. We estimate contributions will total $0.4 million in 2019 . We do not anticipate funding our OPEB plans in 2019 except to pay benefit costs as incurred during the year by plan participants. During the three months ended March 31, 2019 and 2018, pension and OPEB changes in accumulated other comprehensive loss, net of tax, in our Consolidated Balance Sheets totaled $1.2 million and $1.4 million , respectively. Refer to the Consolidated Statements of Stockholders' Equity for additional information. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Share Basic earnings per share are based on the weighted average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share: Three Months Ended March 31, 2019 2018 Basic weighted-average common shares outstanding 1 16,516,335 16,476,011 Incremental shares due to: Restricted stock units 33,651 27,261 Performance shares 13,300 65,469 Stock options — 8,670 Diluted weighted-average common shares outstanding 16,563,286 16,577,411 Basic net earnings per common share $ 0.23 $ 0.16 Diluted net earnings per common share 0.23 0.16 Anti-dilutive shares excluded from calculation 882,475 558,319 1 Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including restricted stock units, or RSUs, performance shares and stock options, based on estimated fair values. EMPLOYEE AWARDS Employee equity-based compensation expense was recognized as follows: Three Months Ended March 31, (In thousands) 2019 2018 Restricted stock units $ 502 $ 422 Performance shares 334 533 Stock options 342 535 Total employee equity-based compensation expense $ 1,178 $ 1,490 As provided in the Clearwater Paper Corporation 2017 Stock Incentive Plan, the performance measure used to determine the number of performance shares ultimately issuable for performance shares granted in 2019 is a free cash flow performance measure for 70% of the performance share awards. For the remaining 30% of the grants, a return on invested capital measure is used. The combined performance of these measures is then subject to an adjustment (increase or decrease) of up to 25% based on our total shareholder return, or TSR, compared to the TSR performance of a selected index. The number of performance shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0% - 200% . During the first three months of 2019 , 47,264 RSUs were settled and distributed. After adjusting for minimum tax withholdings, a net 32,811 shares were issued. In connection with the issued RSUs, the minimum tax withholding payments made during the three months ended March 31, 2019 totaled $0.4 million . During the three months ended March 31, 2019 , we had 18,180 stock option awards expire with a weighted-average exercise price of $53.71 . At March 31, 2019 , we had 572,481 stock option awards that were exercisable with a weighted-average exercise price of $51.17 . The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the three months ended March 31, 2019 and the grant-date fair value of the awards: Three Months Ended March 31, 2019 Number of Average Fair Restricted stock units 127,135 $ 27.13 Performance shares 140,536 27.11 DIRECTOR AWARDS Annually, each outside member of our Board of Directors receives deferred equity-based awards that are measured in units of our common stock and ultimately settled in cash at the time of payment. Accordingly, the compensation expense associated with these awards is subject to fluctuations each quarter based on mark-to-market adjustments at each reporting period in line with changes in the market price of our common stock. As a result of the mark-to-market adjustment, we recorded director equity-based compensation benefit of $0.4 million and $0.7 million for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" on the accompanying Consolidated Balance Sheet were $1.8 million . At December 31, 2018 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" totaled $0.8 million and $1.3 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The estimated fair values of our financial instruments at the dates presented below are as follows: March 31, December 31, 2019 2018 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash, cash equivalents, and restricted cash (Level 1) $ 14,627 $ 14,627 $ 24,947 $ 24,947 Borrowings under revolving credit facilities (Level 2) 202,000 201,943 100,000 99,909 Other short-term debt (Level 1) 10,216 10,216 20,833 20,833 Long-term debt (Level 2) 675,000 644,798 675,000 612,546 Accounting guidance establishes a framework for measuring the fair value of financial instruments, providing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities, or “Level 1” measurements, followed by quoted prices of similar assets or observable market data considering the assets' underlying maturities, or “Level 2” measurements, and the lowest priority to unobservable inputs, or “Level 3” measurements. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should seek to maximize the use of observable inputs and minimize the use of unobservable inputs. Cash, cash equivalents, and restricted cash, borrowings under the revolving credit facilities, other short-term debt and long-term debt are the only items measured at fair value on a recurring basis. We do not have any financial assets measured at fair value on a nonrecurring basis. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments: Three Months Ended March 31, (In thousands) 2019 2018 Segment net sales: Consumer Products $ 223,336 $ 238,842 Pulp and Paperboard 205,443 198,110 Total segment net sales $ 428,779 $ 436,952 Earnings (loss) before income taxes: Consumer Products 1 $ 1,271 $ 1,629 Pulp and Paperboard 1 29,388 26,154 30,659 27,783 Corporate 1 (16,297 ) (16,244 ) Income from operations 14,362 11,539 Interest expense, net (8,486 ) (8,020 ) Non-operating pension and other postretirement benefit (costs) income (1,314 ) (1,279 ) Earnings before income taxes $ 4,562 $ 2,240 Depreciation and amortization: Consumer Products $ 14,771 $ 14,297 Pulp and Paperboard 9,485 9,429 Corporate 1,580 1,441 Total depreciation and amortization $ 25,836 $ 25,167 1 Income from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended March 31, 2018 include $1.4 million , $0.3 million and $3.4 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the three months ended March 31, 2019, no customer accounted for more than 10% of our total company net sales. For the three months ended March 31, 2018, one customer, the Kroger Company, accounted for approximately 16.3% of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended March 31, (In thousands) 2019 2018 Primary geographical markets: United States $ 414,769 $ 420,820 Other countries 14,010 16,132 Total net sales $ 428,779 $ 436,952 Major products: Retail tissue $ 204,585 $ 219,842 Paperboard 203,025 198,110 Non-retail tissue 18,469 16,959 Other 2,700 2,041 Total net sales $ 428,779 $ 436,952 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information All of our subsidiaries that are 100% directly or indirectly owned by Clearwater Paper, guarantee our $275 million aggregate principal amount of 4.5% senior notes issued in January 2013 and due 2023, which we refer to as the 2013 Notes, on a full and unconditional, and joint and several basis. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor subsidiaries, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis. Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2019 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 412,395 $ 67,540 $ (51,156 ) $ 428,779 Costs and expenses: Cost of sales (367,800 ) (59,518 ) 43,072 (384,246 ) Selling, general and administrative expenses (26,245 ) (3,926 ) — (30,171 ) Total operating costs and expenses (394,045 ) (63,444 ) 43,072 (414,417 ) Income from operations 18,350 4,096 (8,084 ) 14,362 Interest expense, net (8,385 ) (101 ) — (8,486 ) Non-operating pension and other postretirement benefit costs (1,314 ) — — (1,314 ) Earnings before income taxes 8,651 3,995 (8,084 ) 4,562 Income tax provision (1,806 ) (852 ) 1,933 (725 ) Equity in income of subsidiary 3,143 — (3,143 ) — Net earnings $ 9,988 $ 3,143 $ (9,294 ) $ 3,837 Other comprehensive income, net of tax 1,239 — — 1,239 Comprehensive income $ 11,227 $ 3,143 $ (9,294 ) $ 5,076 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 455,177 $ 46,213 $ (64,438 ) $ 436,952 Costs and expenses: Cost of sales (412,957 ) (40,360 ) 60,884 (392,433 ) Selling, general and administrative expenses (27,632 ) (5,348 ) — (32,980 ) Total operating costs and expenses (440,589 ) (45,708 ) 60,884 (425,413 ) Income from operations 14,588 505 (3,554 ) 11,539 Interest expense, net (7,929 ) (91 ) — (8,020 ) Non-operating pension and other postretirement benefit costs (1,279 ) — — (1,279 ) Earnings before income taxes 5,380 414 (3,554 ) 2,240 Income tax (provision) benefit (382 ) (13 ) 755 360 Equity in earnings of subsidiary 401 — (401 ) — Net earnings $ 5,399 $ 401 $ (3,200 ) $ 2,600 Other comprehensive income, net of tax 1,419 — — 1,419 Comprehensive income $ 6,818 $ 401 $ (3,200 ) $ 4,019 Clearwater Paper Corporation Consolidating Balance Sheet At March 31, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 12,160 $ — $ — $ 12,160 Restricted cash 1,440 — — 1,440 Receivables, net 148,494 19,599 — 168,093 Taxes receivable 6,965 4 12 6,981 Inventories 241,746 47,136 (2,973 ) 285,909 Other current assets 11,988 249 — 12,237 Total current assets 422,793 66,988 (2,961 ) 486,820 Property, plant and equipment, net 1,217,402 74,600 — 1,292,002 Operating lease right-of-use assets 72,161 5,318 — 77,479 Goodwill 35,074 — — 35,074 Intangible assets, net 784 21,511 — 22,295 Intercompany (payable) receivable (56,409 ) 53,436 2,973 — Investment in subsidiary 178,444 — (178,444 ) — Other assets, net 13,473 3,793 (2,658 ) 14,608 TOTAL ASSETS $ 1,883,722 $ 225,646 $ (181,090 ) $ 1,928,278 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 212,216 $ — $ — $ 212,216 Accounts payable and accrued liabilities 271,005 24,557 12 295,574 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 490,651 24,557 12 515,220 Long-term debt 671,484 — — 671,484 Operating lease liabilities 68,742 3,905 — 72,647 Liability for pensions and other postretirement employee benefits 76,507 — — 76,507 Other long-term obligations 33,859 — — 33,859 Accrued taxes 2,238 873 — 3,111 Deferred tax liabilities 107,997 17,867 (2,658 ) 123,206 TOTAL LIABILITIES 1,451,478 47,202 (2,646 ) 1,496,034 Stockholders’ equity excluding 498,353 178,444 (178,444 ) 498,353 Accumulated other comprehensive loss, net of tax (66,109 ) — — (66,109 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,883,722 $ 225,646 $ (181,090 ) $ 1,928,278 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 22,484 $ — $ — $ 22,484 Receivables, net 127,952 17,567 — 145,519 Taxes receivable 16,634 41 (10,374 ) 6,301 Inventories 222,960 48,361 (5,077 ) 266,244 Other current assets 3,346 53 — 3,399 Total current assets 393,376 66,022 (15,451 ) 443,947 Property, plant and equipment, net 1,192,716 76,555 — 1,269,271 Goodwill 35,074 — — 35,074 Intangible assets, net 1,045 23,035 — 24,080 Intercompany (payable) receivable (62,846 ) 57,769 5,077 — Investment in subsidiary 175,301 — (175,301 ) — Other assets, net 14,839 2,618 (1,711 ) 15,746 TOTAL ASSETS $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 120,833 $ — $ — $ 120,833 Accounts payable and accrued liabilities 299,715 31,691 (10,374 ) 321,032 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 427,978 31,691 (10,374 ) 449,295 Long-term debt 671,292 — — 671,292 Liability for pensions and other postretirement employee benefits 78,191 — — 78,191 Other long-term obligations 38,977 — — 38,977 Accrued taxes 1,918 867 — 2,785 Deferred tax liabilities 104,753 18,140 (1,711 ) 121,182 TOTAL LIABILITIES 1,323,109 50,698 (12,085 ) 1,361,722 Stockholders’ equity excluding 493,744 175,301 (175,301 ) 493,744 Accumulated other comprehensive loss, net of tax (67,348 ) — — (67,348 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 Clearwater Paper Corporation Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 9,988 $ 3,143 $ (9,294 ) $ 3,837 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 22,763 3,073 — 25,836 Equity-based compensation expense 828 — — 828 Deferred taxes 2,251 (1,337 ) — 914 Other non-cash activity, net (569 ) 5 (564 ) Changes in working capital, net (73,447 ) 930 10,386 (62,131 ) Changes in taxes receivable, net 9,669 37 (10,386 ) (680 ) Other, net 2,666 (105 ) — 2,561 Net cash flows from operating activities (25,851 ) 5,746 (9,294 ) (29,399 ) CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (71,309 ) (279 ) — (71,588 ) Net cash flows from investing activities (71,309 ) (279 ) — (71,588 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 290,362 — — 290,362 Repayments of borrowings on short-term debt (198,979 ) — — (198,979 ) Investment (to) from parent (3,827 ) (5,467 ) 9,294 — Other, net (716 ) — — (716 ) Net cash flows from financing activities 86,840 (5,467 ) 9,294 90,667 Decrease in cash, cash equivalents, and restricted cash (10,320 ) — — (10,320 ) Cash, cash equivalents, and restricted cash at beginning of period 24,947 — — 24,947 Cash, cash equivalents, and restricted cash at end of period $ 14,627 $ — $ — $ 14,627 Clearwater Paper Corporation Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 5,399 $ 401 $ (3,200 ) $ 2,600 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 19,958 5,209 — 25,167 Equity-based compensation expense 781 — — 781 Deferred taxes (119 ) (121 ) — (240 ) Other non-cash activity, net 655 (7 ) — 648 Changes in working capital, net 4,661 (3,109 ) (308 ) 1,244 Changes in taxes receivable, net 1,462 1 — 1,463 Other, net (902 ) 99 — (803 ) Net cash flows from operating activities 31,895 2,473 (3,508 ) 30,860 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (47,670 ) (760 ) — (48,430 ) Other, net 761 7 768 Net cash flows from investing activities (46,909 ) (753 ) — (47,662 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 87,325 — — 87,325 Repayments of borrowings on short-term debt (73,825 ) — — (73,825 ) Investment from (to) parent (1,788 ) (1,720 ) 3,508 — Other, net (365 ) — — (365 ) Net cash flows from financing activities 11,347 (1,720 ) 3,508 13,135 Decrease in cash, cash equivalents, and restricted cash (3,667 ) — — (3,667 ) Cash, cash equivalents, and restricted cash at beginning of period 16,738 — — 16,738 Cash, cash equivalents, and restricted cash at end of period $ 13,071 $ — $ — $ 13,071 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Supply Commitment [Table Text Block] | SUPPLY-CHAIN FINANCING We have entered into supply-chain financing programs with financial intermediaries, which provide certain of our vendors the option to be paid by the financial intermediaries on our trade payables earlier than the due date on the applicable invoice. When a vendor receives an early payment on a trade payable it invoiced us for from a financial intermediary, we pay that financial intermediary the face amount of the invoice on the regularly scheduled due date. If we reimburse these vendors for certain fees they may incur in connection with receiving an early payment on an invoice, the amount of such invoice that would have otherwise been included in our trade payables is included in our short term debt. As of March 31, 2019 and December 31, 2018, $10.2 million and $20.8 million, respectively, was included in “Short-term debt” on our Consolidated Balance Sheets related to invoices for which we had reimbursed our vendors’ fees. |
Leases of Lessee Disclosure [Text Block] | LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. Leases Our adoption of ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight. We have operating leases for manufacturing, office, warehouse and distribution space, paperboard sheeting and chipping facilities, equipment, and vehicles. We also have finance leases related to our North Carolina converting and manufacturing facilities, as well as for certain office and other equipment. We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate, or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. Our leases have remaining lease terms from 1 year to 12 years , and some of our leases include one or more options to renew. Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of March 31, 2019, we did not have any short-term leases. Certain of our leases contain lease and non-lease components that are treated as a single lease component. Our variable lease costs include these non-lease components, which primarily consist of expenses for common area maintenance, taxes, and insurance. For the three months ended March 31, 2019, sublease income was immaterial to the financial statements. The tables below present financial information associated with our leases. This information is only presented as of, and for the three months ended, March 31, 2019. As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. LEASE EXPENSE Three Months Ended (In thousands) March 31, 2019 Operating lease costs $ 3,480 Finance lease costs: Amortization of right-of-use assets 415 Interest on lease liabilities 472 Total finance lease costs 887 Variable lease costs 219 Total lease costs $ 4,586 SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended (In thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,097 Operating cash flows from finance leases 472 Financing cash flows from finance leases 289 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 75 Finance leases 493 SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification March 31, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 77,479 Finance lease assets Property, plant and equipment, net 16,695 Total lease ROU assets $ 94,174 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,097 Current finance lease liabilities Accounts payable and accrued liabilities 1,365 Total current lease liabilities 13,462 Non-current operating lease liabilities Operating lease liabilities 72,647 Non-current finance lease liabilities Other long-term obligations 21,692 Total non-current lease liabilities 94,339 Total lease liabilities $ 107,801 LEASE TERM AND DISCOUNT RATE March 31, 2019 Weighted average remaining lease term (years) Operating leases 7.4 Finance leases 11.3 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the three months ended March 31, 2019, $29.6 million of receivables were sold under the Account Purchase Agreement. As of March 31, 2019, $16.6 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line item in the operating activities section of the Consolidated Statements of Cash Flows. For the three months ended March 31, 2019, we recorded factoring expense on sales of receivables of less than $0.1 million , which is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. |
SIGNIFICANT ESTIMATES | SIGNIFICANT ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. |
RESTRICTED CASH AND SHORT-TERM INVESTMENTS | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows. (In thousands) March 31, 2019 March 31, 2018 Cash and cash equivalents $ 12,160 $ 12,064 Restricted cash 1,440 — Restricted cash included in other assets, net 1,027 1,007 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 14,627 $ 13,071 |
TRADE ACCOUNTS RECEIVABLE | REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize . Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of March 31, 2019 and December 31, 2018 , we had allowances for doubtful accounts of $1.7 million and $1.5 million , respectively. Refer to Note 14, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,715.2 million and $1,691.7 million at March 31, 2019 and December 31, 2018 , respectively. For the three months ended March 31, 2019 , we capitalized $3.2 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.2 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the three months ended March 31, 2018, we capitalized $1.0 million of interest expense associated with the Shelby paper machine and $0.3 million of interest expense associated with the continuous pulp digester project. We review the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. |
DERIVATIVES | DERIVATIVES We had no activity during the three months ended March 31, 2019 and 2018 that required hedge or derivative accounting treatment. To help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of March 31, 2019 , these contracts covered approximately 25% of our expected average monthly natural gas requirements for the remainder of 2019 . Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation Cash, Cash Equivalents, and Restricted Cash Table (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | (In thousands) March 31, 2019 March 31, 2018 Cash and cash equivalents $ 12,160 $ 12,064 Restricted cash 1,440 — Restricted cash included in other assets, net 1,027 1,007 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 14,627 $ 13,071 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Pulp, paperboard and tissue products $ 176,788 $ 159,499 Materials and supplies 90,470 86,892 Logs, pulpwood, chips and sawdust 18,651 19,853 $ 285,909 $ 266,244 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | LEASE EXPENSE Three Months Ended (In thousands) March 31, 2019 Operating lease costs $ 3,480 Finance lease costs: Amortization of right-of-use assets 415 Interest on lease liabilities 472 Total finance lease costs 887 Variable lease costs 219 Total lease costs $ 4,586 |
Lease, Supplemental cash flow information | SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended (In thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,097 Operating cash flows from finance leases 472 Financing cash flows from finance leases 289 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 75 Finance leases 493 |
Supplemental Balance Sheet Disclosures [Text Block] | SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification March 31, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 77,479 Finance lease assets Property, plant and equipment, net 16,695 Total lease ROU assets $ 94,174 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,097 Current finance lease liabilities Accounts payable and accrued liabilities 1,365 Total current lease liabilities 13,462 Non-current operating lease liabilities Operating lease liabilities 72,647 Non-current finance lease liabilities Other long-term obligations 21,692 Total non-current lease liabilities 94,339 Total lease liabilities $ 107,801 |
Lease term and discount rate [Table Text Block] | LEASE TERM AND DISCOUNT RATE March 31, 2019 Weighted average remaining lease term (years) Operating leases 7.4 Finance leases 11.3 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible assets at the balance sheet dates comprise the following: March 31, 2019 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (36,978 ) $ 19,475 Trade names and trademarks 7.4 6,786 (4,286 ) 2,500 Other intangibles 6.0 572 (252 ) 320 $ 63,811 $ (41,516 ) $ 22,295 December 31, 2018 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (35,469 ) $ 20,984 Trade names and trademarks 7.4 6,786 (4,029 ) 2,757 Other intangibles 6.0 572 (233 ) 339 $ 63,811 $ (39,731 ) $ 24,080 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Trade accounts payable $ 198,289 $ 228,059 Accrued wages, salaries and employee benefits 29,549 41,426 Lease liabilities 13,462 — Accrued account purchase agreement liabilities 12,664 4,885 Accrued utilities 8,561 6,934 Accrued taxes other than income taxes payable 7,789 6,243 Accrued discounts and allowances 7,230 8,143 Accrued interest 7,175 14,672 Other 10,855 10,670 $ 295,574 $ 321,032 |
Other Long-Term Obligations (Ta
Other Long-Term Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Obligations | Other long-term obligations at the balance sheet dates consist of: (In thousands) March 31, 2019 December 31, 2018 Finance lease obligations, net of current portion $ 21,692 $ 21,589 Deferred proceeds 4,350 4,511 Deferred compensation 3,912 2,585 Other 3,905 10,292 $ 33,859 $ 38,977 |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans | The following table details the components of net periodic cost of our company-sponsored pension and other postretirement employee benefit, or OPEB, plans for the periods presented: Three Months Ended March 31, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 550 $ 434 $ 25 $ 48 Interest cost 3,121 3,000 647 607 Expected return on plan assets (4,135 ) (4,254 ) — — Amortization of prior service cost (credit) — — — (419 ) Amortization of actuarial loss (gain) 1,909 2,570 (228 ) (225 ) Net periodic cost $ 1,445 $ 1,750 $ 444 $ 11 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings per Share | The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share: Three Months Ended March 31, 2019 2018 Basic weighted-average common shares outstanding 1 16,516,335 16,476,011 Incremental shares due to: Restricted stock units 33,651 27,261 Performance shares 13,300 65,469 Stock options — 8,670 Diluted weighted-average common shares outstanding 16,563,286 16,577,411 Basic net earnings per common share $ 0.23 $ 0.16 Diluted net earnings per common share 0.23 0.16 Anti-dilutive shares excluded from calculation 882,475 558,319 1 Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity-Based Compensation Expense | Employee equity-based compensation expense was recognized as follows: Three Months Ended March 31, (In thousands) 2019 2018 Restricted stock units $ 502 $ 422 Performance shares 334 533 Stock options 342 535 Total employee equity-based compensation expense $ 1,178 $ 1,490 |
Summary of Number of Share-Based Awards Granted | The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the three months ended March 31, 2019 and the grant-date fair value of the awards: Three Months Ended March 31, 2019 Number of Average Fair Restricted stock units 127,135 $ 27.13 Performance shares 140,536 27.11 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of our financial instruments at the dates presented below are as follows: March 31, December 31, 2019 2018 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash, cash equivalents, and restricted cash (Level 1) $ 14,627 $ 14,627 $ 24,947 $ 24,947 Borrowings under revolving credit facilities (Level 2) 202,000 201,943 100,000 99,909 Other short-term debt (Level 1) 10,216 10,216 20,833 20,833 Long-term debt (Level 2) 675,000 644,798 675,000 612,546 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended March 31, (In thousands) 2019 2018 Primary geographical markets: United States $ 414,769 $ 420,820 Other countries 14,010 16,132 Total net sales $ 428,779 $ 436,952 Major products: Retail tissue $ 204,585 $ 219,842 Paperboard 203,025 198,110 Non-retail tissue 18,469 16,959 Other 2,700 2,041 Total net sales $ 428,779 $ 436,952 |
Reportable Segments Information | The table below presents information about our reportable segments: Three Months Ended March 31, (In thousands) 2019 2018 Segment net sales: Consumer Products $ 223,336 $ 238,842 Pulp and Paperboard 205,443 198,110 Total segment net sales $ 428,779 $ 436,952 Earnings (loss) before income taxes: Consumer Products 1 $ 1,271 $ 1,629 Pulp and Paperboard 1 29,388 26,154 30,659 27,783 Corporate 1 (16,297 ) (16,244 ) Income from operations 14,362 11,539 Interest expense, net (8,486 ) (8,020 ) Non-operating pension and other postretirement benefit (costs) income (1,314 ) (1,279 ) Earnings before income taxes $ 4,562 $ 2,240 Depreciation and amortization: Consumer Products $ 14,771 $ 14,297 Pulp and Paperboard 9,485 9,429 Corporate 1,580 1,441 Total depreciation and amortization $ 25,836 $ 25,167 1 Income from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended March 31, 2018 include $1.4 million , $0.3 million and $3.4 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the three months ended March 31, 2019, no customer accounted for more than 10% of our total company net sales. For the three months ended March 31, 2018, one customer, the Kroger Company, accounted for approximately 16.3% of our total company net sales. Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments: Three Months Ended March 31, (In thousands) 2019 2018 Segment net sales: Consumer Products $ 223,336 $ 238,842 Pulp and Paperboard 205,443 198,110 Total segment net sales $ 428,779 $ 436,952 Earnings (loss) before income taxes: Consumer Products 1 $ 1,271 $ 1,629 Pulp and Paperboard 1 29,388 26,154 30,659 27,783 Corporate 1 (16,297 ) (16,244 ) Income from operations 14,362 11,539 Interest expense, net (8,486 ) (8,020 ) Non-operating pension and other postretirement benefit (costs) income (1,314 ) (1,279 ) Earnings before income taxes $ 4,562 $ 2,240 Depreciation and amortization: Consumer Products $ 14,771 $ 14,297 Pulp and Paperboard 9,485 9,429 Corporate 1,580 1,441 Total depreciation and amortization $ 25,836 $ 25,167 1 Income from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended March 31, 2018 include $1.4 million , $0.3 million and $3.4 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the three months ended March 31, 2019, no customer accounted for more than 10% of our total company net sales. For the three months ended March 31, 2018, one customer, the Kroger Company, accounted for approximately 16.3% of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended March 31, (In thousands) 2019 2018 Primary geographical markets: United States $ 414,769 $ 420,820 Other countries 14,010 16,132 Total net sales $ 428,779 $ 436,952 Major products: Retail tissue $ 204,585 $ 219,842 Paperboard 203,025 198,110 Non-retail tissue 18,469 16,959 Other 2,700 2,041 Total net sales $ 428,779 $ 436,952 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2019 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 412,395 $ 67,540 $ (51,156 ) $ 428,779 Costs and expenses: Cost of sales (367,800 ) (59,518 ) 43,072 (384,246 ) Selling, general and administrative expenses (26,245 ) (3,926 ) — (30,171 ) Total operating costs and expenses (394,045 ) (63,444 ) 43,072 (414,417 ) Income from operations 18,350 4,096 (8,084 ) 14,362 Interest expense, net (8,385 ) (101 ) — (8,486 ) Non-operating pension and other postretirement benefit costs (1,314 ) — — (1,314 ) Earnings before income taxes 8,651 3,995 (8,084 ) 4,562 Income tax provision (1,806 ) (852 ) 1,933 (725 ) Equity in income of subsidiary 3,143 — (3,143 ) — Net earnings $ 9,988 $ 3,143 $ (9,294 ) $ 3,837 Other comprehensive income, net of tax 1,239 — — 1,239 Comprehensive income $ 11,227 $ 3,143 $ (9,294 ) $ 5,076 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 455,177 $ 46,213 $ (64,438 ) $ 436,952 Costs and expenses: Cost of sales (412,957 ) (40,360 ) 60,884 (392,433 ) Selling, general and administrative expenses (27,632 ) (5,348 ) — (32,980 ) Total operating costs and expenses (440,589 ) (45,708 ) 60,884 (425,413 ) Income from operations 14,588 505 (3,554 ) 11,539 Interest expense, net (7,929 ) (91 ) — (8,020 ) Non-operating pension and other postretirement benefit costs (1,279 ) — — (1,279 ) Earnings before income taxes 5,380 414 (3,554 ) 2,240 Income tax (provision) benefit (382 ) (13 ) 755 360 Equity in earnings of subsidiary 401 — (401 ) — Net earnings $ 5,399 $ 401 $ (3,200 ) $ 2,600 Other comprehensive income, net of tax 1,419 — — 1,419 Comprehensive income $ 6,818 $ 401 $ (3,200 ) $ 4,019 |
Condensed Consolidating Balance Sheet | Clearwater Paper Corporation Consolidating Balance Sheet At March 31, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 12,160 $ — $ — $ 12,160 Restricted cash 1,440 — — 1,440 Receivables, net 148,494 19,599 — 168,093 Taxes receivable 6,965 4 12 6,981 Inventories 241,746 47,136 (2,973 ) 285,909 Other current assets 11,988 249 — 12,237 Total current assets 422,793 66,988 (2,961 ) 486,820 Property, plant and equipment, net 1,217,402 74,600 — 1,292,002 Operating lease right-of-use assets 72,161 5,318 — 77,479 Goodwill 35,074 — — 35,074 Intangible assets, net 784 21,511 — 22,295 Intercompany (payable) receivable (56,409 ) 53,436 2,973 — Investment in subsidiary 178,444 — (178,444 ) — Other assets, net 13,473 3,793 (2,658 ) 14,608 TOTAL ASSETS $ 1,883,722 $ 225,646 $ (181,090 ) $ 1,928,278 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 212,216 $ — $ — $ 212,216 Accounts payable and accrued liabilities 271,005 24,557 12 295,574 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 490,651 24,557 12 515,220 Long-term debt 671,484 — — 671,484 Operating lease liabilities 68,742 3,905 — 72,647 Liability for pensions and other postretirement employee benefits 76,507 — — 76,507 Other long-term obligations 33,859 — — 33,859 Accrued taxes 2,238 873 — 3,111 Deferred tax liabilities 107,997 17,867 (2,658 ) 123,206 TOTAL LIABILITIES 1,451,478 47,202 (2,646 ) 1,496,034 Stockholders’ equity excluding 498,353 178,444 (178,444 ) 498,353 Accumulated other comprehensive loss, net of tax (66,109 ) — — (66,109 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,883,722 $ 225,646 $ (181,090 ) $ 1,928,278 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 22,484 $ — $ — $ 22,484 Receivables, net 127,952 17,567 — 145,519 Taxes receivable 16,634 41 (10,374 ) 6,301 Inventories 222,960 48,361 (5,077 ) 266,244 Other current assets 3,346 53 — 3,399 Total current assets 393,376 66,022 (15,451 ) 443,947 Property, plant and equipment, net 1,192,716 76,555 — 1,269,271 Goodwill 35,074 — — 35,074 Intangible assets, net 1,045 23,035 — 24,080 Intercompany (payable) receivable (62,846 ) 57,769 5,077 — Investment in subsidiary 175,301 — (175,301 ) — Other assets, net 14,839 2,618 (1,711 ) 15,746 TOTAL ASSETS $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 120,833 $ — $ — $ 120,833 Accounts payable and accrued liabilities 299,715 31,691 (10,374 ) 321,032 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 427,978 31,691 (10,374 ) 449,295 Long-term debt 671,292 — — 671,292 Liability for pensions and other postretirement employee benefits 78,191 — — 78,191 Other long-term obligations 38,977 — — 38,977 Accrued taxes 1,918 867 — 2,785 Deferred tax liabilities 104,753 18,140 (1,711 ) 121,182 TOTAL LIABILITIES 1,323,109 50,698 (12,085 ) 1,361,722 Stockholders’ equity excluding 493,744 175,301 (175,301 ) 493,744 Accumulated other comprehensive loss, net of tax (67,348 ) — — (67,348 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 |
Condensed Consolidating Statement of Cash Flows | Clearwater Paper Corporation Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 9,988 $ 3,143 $ (9,294 ) $ 3,837 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 22,763 3,073 — 25,836 Equity-based compensation expense 828 — — 828 Deferred taxes 2,251 (1,337 ) — 914 Other non-cash activity, net (569 ) 5 (564 ) Changes in working capital, net (73,447 ) 930 10,386 (62,131 ) Changes in taxes receivable, net 9,669 37 (10,386 ) (680 ) Other, net 2,666 (105 ) — 2,561 Net cash flows from operating activities (25,851 ) 5,746 (9,294 ) (29,399 ) CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (71,309 ) (279 ) — (71,588 ) Net cash flows from investing activities (71,309 ) (279 ) — (71,588 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 290,362 — — 290,362 Repayments of borrowings on short-term debt (198,979 ) — — (198,979 ) Investment (to) from parent (3,827 ) (5,467 ) 9,294 — Other, net (716 ) — — (716 ) Net cash flows from financing activities 86,840 (5,467 ) 9,294 90,667 Decrease in cash, cash equivalents, and restricted cash (10,320 ) — — (10,320 ) Cash, cash equivalents, and restricted cash at beginning of period 24,947 — — 24,947 Cash, cash equivalents, and restricted cash at end of period $ 14,627 $ — $ — $ 14,627 Clearwater Paper Corporation Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 5,399 $ 401 $ (3,200 ) $ 2,600 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 19,958 5,209 — 25,167 Equity-based compensation expense 781 — — 781 Deferred taxes (119 ) (121 ) — (240 ) Other non-cash activity, net 655 (7 ) — 648 Changes in working capital, net 4,661 (3,109 ) (308 ) 1,244 Changes in taxes receivable, net 1,462 1 — 1,463 Other, net (902 ) 99 — (803 ) Net cash flows from operating activities 31,895 2,473 (3,508 ) 30,860 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (47,670 ) (760 ) — (48,430 ) Other, net 761 7 768 Net cash flows from investing activities (46,909 ) (753 ) — (47,662 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 87,325 — — 87,325 Repayments of borrowings on short-term debt (73,825 ) — — (73,825 ) Investment from (to) parent (1,788 ) (1,720 ) 3,508 — Other, net (365 ) — — (365 ) Net cash flows from financing activities 11,347 (1,720 ) 3,508 13,135 Decrease in cash, cash equivalents, and restricted cash (3,667 ) — — (3,667 ) Cash, cash equivalents, and restricted cash at beginning of period 16,738 — — 16,738 Cash, cash equivalents, and restricted cash at end of period $ 13,071 $ — $ — $ 13,071 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 06, 2019 | Dec. 31, 2017 | |
Nature of Operations | |||||
Cash and Cash Equivalents, at Carrying Value | $ 12,160 | $ 12,064 | $ 22,484 | ||
Incremental direct costs, short-term in nature, expensed when incurred | 12 months | ||||
revenue recognition, payment terms | 30 days | ||||
Severance Costs | 5,100 | ||||
Restricted Cash, Current | $ 1,440 | 0 | |||
Restricted Cash, Noncurrent | 1,027 | 1,007 | |||
Allowance for doubtful accounts | 1,500 | ||||
Accumulated depreciation | $ 1,715,200 | 1,691,658 | |||
Percentage Of Expected Natural Gas Requirement Covered Under Contract | 25.00% | ||||
Interest Costs Capitalized | $ 200 | 300 | |||
Shelby paper machine interest cost capitalized | $ 3,200 | 1,000 | |||
Entity Common Stock, Shares Outstanding | 16,515,156 | ||||
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the three months ended March 31, 2019, $29.6 million of receivables were sold under the Account Purchase Agreement. As of March 31, 2019, $16.6 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line item in the operating activities section of the Consolidated Statements of Cash Flows. For the three months ended March 31, 2019, we recorded factoring expense on sales of receivables of less than $0.1 million , which is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. | ||||
Sale of Accounts Receivable | $ 29,600 | ||||
Outstanding Accounts Receivable Sold | 16,600 | ||||
Factoring Expense | 30,000 | ||||
Factoring Expense | 100 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,627 | $ 13,071 | 24,947 | $ 16,738 | |
Accrued account purchase agreement liabilities | $ 12,664 | 4,885 | |||
Consumer Products | |||||
Nature of Operations | |||||
Severance Costs | $ 1,400 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Pulp, paperboard and tissue products | $ 176,788 | $ 159,499 |
Materials and supplies | 90,470 | 86,892 |
Logs, pulpwood, chips and sawdust | 18,651 | 19,853 |
Inventories | $ 285,909 | $ 266,244 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 5 months | |
Finance Lease, Weighted Average Remaining Lease Term | 11 years 3 months 9 days | |
Operating Lease, Right-of-Use Asset | $ 77,479 | $ 0 |
Operating Lease, Payments | 4,097 | |
Finance Lease, Interest Payment on Liability | 472 | |
Operating Lease, Cost | 3,480 | |
Finance Lease, Right-of-Use Asset, Amortization | 415 | |
Finance Lease, Cost | 887 | |
Variable Lease, Cost | 219 | |
Lease, Cost | 4,586 | |
Finance Lease, Principal Payments | 289 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 75 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 493 | |
Finance Lease, Right-of-Use Asset | 16,695 | |
total leased assets | 94,174 | |
Operating Lease, Liability, Current | 12,097 | |
Finance Lease, Liability, Current | 1,365 | |
Total lease liability, current | 13,462 | 0 |
Operating Lease, Liability, Noncurrent | 72,647 | 0 |
Finance Lease, Liability, Noncurrent | 21,692 | $ 21,589 |
Total lease liability, noncurrent | 94,339 | |
Total lease liabilities | $ 107,801 | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.90% | |
Finance Lease, Weighted Average Discount Rate, Percent | 8.30% | |
Minimum [Member] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Remaining lease term | 12 years |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1,800 | $ 2,000 | |
Historical Cost | 63,811 | $ 63,811 | |
Accumulated Amortization | (41,516) | (39,731) | |
Net Balance | $ 22,295 | $ 24,080 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 9 years 4 months 24 days | 9 years 4 months 24 days | |
Historical Cost | $ 56,453 | $ 56,453 | |
Accumulated Amortization | (36,978) | (35,469) | |
Net Balance | $ 19,475 | $ 20,984 | |
Tradenames and trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 7 years 5 months | 7 years 5 months | |
Historical Cost | $ 6,786 | $ 6,786 | |
Accumulated Amortization | (4,286) | (4,029) | |
Net Balance | $ 2,500 | $ 2,757 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 6 years | 6 years | |
Historical Cost | $ 572 | $ 572 | |
Accumulated Amortization | (252) | (233) | |
Net Balance | $ 320 | $ 339 |
Taxes - Additional Information
Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019Rate | Mar. 31, 2018Rate | |
Operating Loss Carryforwards [Line Items] | ||
Estimated Annual Effective Tax Rate | 6.00% | 25.00% |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 198,289 | $ 228,059 |
Accrued wages, salaries and employee benefits | 29,549 | 41,426 |
Total lease liability, current | 13,462 | 0 |
Accrued account purchase agreement liabilities | 12,664 | 4,885 |
Accrued discounts and allowances | 7,230 | 8,143 |
Accrued taxes other than income taxes payable | 7,789 | 6,243 |
Accrued utilities | 8,561 | 6,934 |
Accrued interest | 7,175 | 14,672 |
Other | 10,855 | 10,670 |
Accounts payable and accrued liabilities | $ 295,574 | $ 321,032 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 21, 2013 |
Debt Instrument [Line Items] | |||
Line of Credit, Current | $ 202,000 | ||
Long-term Line of Credit | 100,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 201,943 | $ 99,909 | |
Senior Notes Due Twenty Twenty-Three [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 275,000 | ||
Debt instrument, interest rate | 4.50% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Outstanding stand by letters of credit | 7,500 | ||
Credit facility available to draw | 90,500 | ||
Reported Value Measurement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit, Current | 202,000 | 100,000 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 302,000 | $ 200,000 |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Finance Lease, Liability, Noncurrent | $ 21,692 | $ 21,589 |
Deferred proceeds | 4,350 | 4,511 |
Deferred compensation | 3,912 | 2,585 |
Other | 3,905 | 10,292 |
Other long-term obligations | $ 33,859 | $ 38,977 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | $ (1,239) | $ (1,728) |
Period opening balance | (67,348) | |
Net current period other comprehensive income ending balance | 1,239 | 1,419 |
Period closing balance | (66,109) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 0 | $ (309) |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefit Plans - Additional Information (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0 | |||||
Non-operating pension and other postretirment benefit (costs) income | 1,314 | $ 1,279 | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 1,239 | 1,419 | ||||
Supplemental Employee Retirement Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contribution | 100 | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 400 | |||||
Non Qualified Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 444 | 11 | ||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1,445 | 1,750 | ||||
Employer contribution | $ 0 | $ 0 | ||||
Cost of Sales [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | $ (200) | |||||
Non-operating expense [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Non-operating pension and other postretirment benefit (costs) income | 1,300 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | $ (200) |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefit Plans Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans (Detail 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Non-operating pension and other postretirment benefit (costs) income | $ 1,314 | $ 1,279 | ||||
Pension Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Service Cost | 550 | 434 | ||||
Interest cost | 3,121 | 3,000 | ||||
Expected return on plan assets | (4,135) | (4,254) | ||||
Amortization of prior service cost (credit) | 0 | 0 | ||||
Amortization of actuarial loss | 1,909 | 2,570 | ||||
Net periodic cost | 1,445 | 1,750 | ||||
Other Postretirement Employee Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Service Cost | 25 | 48 | ||||
Interest cost | 647 | 607 | ||||
Expected return on plan assets | 0 | 0 | ||||
Amortization of prior service cost (credit) | 0 | (419) | ||||
Amortization of actuarial loss | (228) | (225) | ||||
Net periodic cost | $ 444 | $ 11 | ||||
Selling, General and Administrative Expenses [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | $ 200 | |||||
Cost of Sales [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 200 | |||||
Non-operating expense [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Non-operating pension and other postretirment benefit (costs) income | $ 1,300 |
Earnings per Common Share Recon
Earnings per Common Share Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings Per Share (Detail) - $ / shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Basic average common shares outstanding | [1] | 16,516,335 | 16,476,011 |
Incremental shares due to: | |||
Restricted stock units | 33,651 | 27,261 | |
Performance shares | 13,300 | 65,469 | |
Incremental Common Shares Attributable to Stock Options | 0 | 8,670 | |
Diluted average common shares outstanding | 16,563,286 | 16,577,411 | |
Basic net earnings per common share (in dollars per share) | $ 0.23 | $ 0.16 | |
Diluted net earnings per common share (in dollars per share) | $ 0.23 | $ 0.16 | |
Anti-dilutive shares excluded from calculation | 882,475 | 558,319 | |
[1] | Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% | ||
Percentage of performance share payout measured by return on invested capital | 30.00% | ||
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% | ||
Allocated Share-based Compensation Expense | $ 1,178 | $ 1,490 | |
Cash paid for minimum tax withholdings | $ 400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 18,180 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 53.71 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 572,481 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 51.17 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 334 | 533 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 502 | 422 | |
Shares issued (in shares) | 32,811 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 47,264 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 342 | 535 | |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | (400) | $ (700) | |
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | $ 800 | ||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ 1,800 | $ 1,300 | |
Minimum [Member] | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 0.00% | ||
Maximum | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 200.00% |
Equity-Based Compensation Emplo
Equity-Based Compensation Employee Equity Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ 1,178 | $ 1,490 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | 502 | 422 |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | 334 | 533 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ 342 | $ 535 |
Equity-Based Compensation Summa
Equity-Based Compensation Summary of Number of Share-Based Awards Granted (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of performance share payout measured by return on invested capital | 30.00% |
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% |
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 140,536 |
Grant-date fair value of awards per share | $ / shares | $ 27.11 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 127,135 |
Grant-date fair value of awards per share | $ / shares | $ 27.13 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 201,943 | $ 99,909 |
Supply chain financing, amount outstanding | 10,200 | 20,800 |
Line of Credit, Current | 202,000 | |
Cash, restricted cash, and short-term investments (Level 1) | 14,627 | 24,947 |
Long-term debt (Level 1) | 644,798 | 612,546 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 302,000 | 200,000 |
Supply chain financing, amount outstanding | 10,200 | 20,800 |
Line of Credit, Current | 202,000 | 100,000 |
Cash, restricted cash, and short-term investments (Level 1) | 14,627 | 24,947 |
Long-term debt (Level 1) | $ 675,000 | $ 675,000 |
Segment Information Reportable
Segment Information Reportable Segments Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 428,779 | $ 436,952 | |||
Income (loss) from operations | 14,362 | 11,539 | |||
Interest expense, net | (8,486) | (8,020) | |||
Non-operating pension and other postretirment benefit (costs) income | 1,314 | 1,279 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 4,562 | 2,240 | |||
Depreciation and amortization | 25,836 | 25,167 | |||
Severance Costs | $ 5,100 | ||||
Concentration Risk, Percentage | 16.30% | ||||
Consumer Products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 223,336 | $ 238,842 | |||
Income (loss) from operations | [1] | 1,271 | 1,629 | ||
Depreciation and amortization | 14,771 | 14,297 | |||
Severance Costs | 1,400 | ||||
Pulp and Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 205,443 | 198,110 | |||
Income (loss) from operations | [1] | 29,388 | 26,154 | ||
Depreciation and amortization | 9,485 | 9,429 | |||
Severance Costs | 300 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | 30,659 | 27,783 | |||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | [1] | (16,297) | (16,244) | ||
Depreciation and amortization | 1,580 | 1,441 | |||
Severance Costs | $ 3,400 | ||||
Non-US [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 14,010 | 16,132 | |||
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 414,769 | 420,820 | |||
Retail tissue [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 204,585 | 219,842 | |||
Paperboard [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 203,025 | 198,110 | |||
Non-retail tissue [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 18,469 | 16,959 | |||
Other [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,700 | $ 2,041 | |||
[1] | Income from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended March 31, 2018 include $1.4 million, $0.3 million and $3.4 million, respectively, of expenses associated with our selling, general and administrative cost control measures. |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 21, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Net sales | $ 428,779 | $ 436,952 | |||
Cost and expenses: | |||||
Income (loss) from operations | 14,362 | 11,539 | |||
Interest expense, net | (8,486) | (8,020) | |||
Non-operating pension and other postretirment benefit (costs) income | (1,314) | (1,279) | |||
Earnings (loss) before income taxes | 4,562 | 2,240 | |||
Income tax (provision) benefit | (725) | 360 | |||
Equity in income (loss) of subsidiary | 0 | 0 | |||
Net earnings (loss) | 3,837 | 2,600 | |||
Other comprehensive income (loss), net of tax | 1,239 | 1,419 | |||
Comprehensive income | 5,076 | 4,019 | |||
Cost of sales | (384,246) | (392,433) | |||
Selling, general and administrative expenses | (30,171) | (32,980) | |||
Total operating costs and expenses | (414,417) | (425,413) | |||
Issuer | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net sales | 412,395 | 455,177 | |||
Cost and expenses: | |||||
Income (loss) from operations | 18,350 | 14,588 | |||
Interest expense, net | (8,385) | (7,929) | |||
Non-operating pension and other postretirment benefit (costs) income | (1,314) | (1,279) | |||
Earnings (loss) before income taxes | 8,651 | 5,380 | |||
Income tax (provision) benefit | (1,806) | (382) | |||
Equity in income (loss) of subsidiary | 3,143 | 401 | |||
Net earnings (loss) | 9,988 | 5,399 | |||
Other comprehensive income (loss), net of tax | 1,239 | 1,419 | |||
Comprehensive income | 11,227 | 6,818 | |||
Cost of sales | (367,800) | (412,957) | |||
Selling, general and administrative expenses | (26,245) | (27,632) | |||
Total operating costs and expenses | (394,045) | (440,589) | |||
Guarantor Subsidiaries | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net sales | 67,540 | 46,213 | |||
Cost and expenses: | |||||
Income (loss) from operations | 4,096 | 505 | |||
Interest expense, net | (101) | (91) | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | |||
Earnings (loss) before income taxes | 3,995 | 414 | |||
Income tax (provision) benefit | (852) | (13) | |||
Equity in income (loss) of subsidiary | 0 | 0 | |||
Net earnings (loss) | 3,143 | 401 | |||
Other comprehensive income (loss), net of tax | 0 | 0 | |||
Comprehensive income | 3,143 | 401 | |||
Cost of sales | (59,518) | (40,360) | |||
Selling, general and administrative expenses | (3,926) | (5,348) | |||
Total operating costs and expenses | (63,444) | (45,708) | |||
Eliminations | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net sales | (51,156) | (64,438) | |||
Cost and expenses: | |||||
Income (loss) from operations | (8,084) | (3,554) | |||
Interest expense, net | 0 | 0 | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | |||
Earnings (loss) before income taxes | (8,084) | (3,554) | |||
Income tax (provision) benefit | 1,933 | 755 | |||
Equity in income (loss) of subsidiary | (3,143) | (401) | |||
Net earnings (loss) | (9,294) | (3,200) | |||
Other comprehensive income (loss), net of tax | 0 | 0 | |||
Comprehensive income | (9,294) | (3,200) | |||
Cost of sales | 43,072 | 60,884 | |||
Selling, general and administrative expenses | 0 | 0 | |||
Total operating costs and expenses | $ 43,072 | $ 60,884 | |||
Senior Notes Due Twenty Twenty-Three [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt Instrument, Face Amount | $ 275,000 | ||||
Cost and expenses: | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
Supplemental Guarantor Financ_4
Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | |||
Cash | $ 12,160 | $ 22,484 | $ 12,064 |
Restricted cash | 1,440 | 0 | |
Receivables, net | 168,093 | 145,519 | |
Taxes receivable | 6,981 | 6,301 | |
Inventories | 285,909 | 266,244 | |
Other Assets, Current | 12,237 | 3,399 | |
Total current assets | 486,820 | 443,947 | |
Property, plant and equipment, net | 1,292,002 | 1,269,271 | |
Operating Lease, Right-of-Use Asset | 77,479 | 0 | |
Goodwill | 35,074 | 35,074 | |
Intangible assets, net | 22,295 | 24,080 | |
Investment in subsidiary | 0 | 0 | |
Other assets, net | 14,608 | 15,746 | |
TOTAL ASSETS | 1,928,278 | 1,788,118 | |
Line of Credit, Current | 202,000 | ||
Debt, Current | 212,216 | 120,833 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 295,574 | 321,032 | |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 | |
Total current liabilities | 515,220 | 449,295 | |
Long-term debt | 671,484 | 671,292 | |
Operating Lease, Liability, Noncurrent | 72,647 | 0 | |
Liability for pensions and other postretirement employee benefits | 76,507 | 78,191 | |
Other long-term obligations | 33,859 | 38,977 | |
Accrued taxes | 3,111 | 2,785 | |
Deferred Tax Liabilities, Gross, Noncurrent | 123,206 | 121,182 | |
Liabilities | 1,496,034 | 1,361,722 | |
Accumulated other comprehensive loss, net of tax | (66,109) | (67,348) | |
Stockholders' equity excluding accumulated other comprehensive loss | 498,353 | 493,744 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,928,278 | 1,788,118 | |
Issuer | |||
Current assets: | |||
Cash | 12,160 | 22,484 | |
Restricted cash | 1,440 | ||
Receivables, net | 148,494 | 127,952 | |
Taxes receivable | 6,965 | 16,634 | |
Inventories | 241,746 | 222,960 | |
Other Assets, Current | 11,988 | 3,346 | |
Total current assets | 422,793 | 393,376 | |
Property, plant and equipment, net | 1,217,402 | 1,192,716 | |
Operating Lease, Right-of-Use Asset | 72,161 | ||
Goodwill | 35,074 | 35,074 | |
Intangible assets, net | 784 | 1,045 | |
Intercompany receivable (payable) | (56,409) | (62,846) | |
Investment in subsidiary | 178,444 | 175,301 | |
Other assets, net | 13,473 | 14,839 | |
TOTAL ASSETS | 1,883,722 | 1,749,505 | |
Debt, Current | 212,216 | 120,833 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 271,005 | 299,715 | |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 | |
Total current liabilities | 490,651 | 427,978 | |
Long-term debt | 671,484 | 671,292 | |
Operating Lease, Liability, Noncurrent | 68,742 | ||
Liability for pensions and other postretirement employee benefits | 76,507 | 78,191 | |
Other long-term obligations | 33,859 | 38,977 | |
Accrued taxes | 2,238 | 1,918 | |
Deferred Tax Liabilities, Gross, Noncurrent | 107,997 | 104,753 | |
Liabilities | 1,451,478 | 1,323,109 | |
Accumulated other comprehensive loss, net of tax | (66,109) | (67,348) | |
Stockholders' equity excluding accumulated other comprehensive loss | 498,353 | 493,744 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,883,722 | 1,749,505 | |
Guarantor Subsidiaries | |||
Current assets: | |||
Cash | 0 | 0 | |
Restricted cash | 0 | ||
Receivables, net | 19,599 | 17,567 | |
Taxes receivable | 4 | 41 | |
Inventories | 47,136 | 48,361 | |
Other Assets, Current | 249 | 53 | |
Total current assets | 66,988 | 66,022 | |
Property, plant and equipment, net | 74,600 | 76,555 | |
Operating Lease, Right-of-Use Asset | 5,318 | ||
Goodwill | 0 | 0 | |
Intangible assets, net | 21,511 | 23,035 | |
Intercompany receivable (payable) | 53,436 | 57,769 | |
Investment in subsidiary | 0 | 0 | |
Other assets, net | 3,793 | 2,618 | |
TOTAL ASSETS | 225,646 | 225,999 | |
Debt, Current | 0 | 0 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 24,557 | 31,691 | |
Current liability for pensions and other postretirement employee benefits | 0 | 0 | |
Total current liabilities | 24,557 | 31,691 | |
Long-term debt | 0 | 0 | |
Operating Lease, Liability, Noncurrent | 3,905 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | |
Other long-term obligations | 0 | 0 | |
Accrued taxes | 873 | 867 | |
Deferred Tax Liabilities, Gross, Noncurrent | 17,867 | 18,140 | |
Liabilities | 47,202 | 50,698 | |
Accumulated other comprehensive loss, net of tax | 0 | 0 | |
Stockholders' equity excluding accumulated other comprehensive loss | 178,444 | 175,301 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 225,646 | 225,999 | |
Eliminations | |||
Current assets: | |||
Cash | 0 | 0 | |
Restricted cash | 0 | ||
Receivables, net | 0 | 0 | |
Taxes receivable | 12 | (10,374) | |
Inventories | (2,973) | (5,077) | |
Other Assets, Current | 0 | 0 | |
Total current assets | (2,961) | (15,451) | |
Property, plant and equipment, net | 0 | 0 | |
Operating Lease, Right-of-Use Asset | 0 | ||
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Intercompany receivable (payable) | 2,973 | 5,077 | |
Investment in subsidiary | (178,444) | (175,301) | |
Other assets, net | (2,658) | (1,711) | |
TOTAL ASSETS | (181,090) | (187,386) | |
Debt, Current | 0 | 0 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 12 | (10,374) | |
Current liability for pensions and other postretirement employee benefits | 0 | 0 | |
Total current liabilities | 12 | (10,374) | |
Long-term debt | 0 | 0 | |
Operating Lease, Liability, Noncurrent | 0 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | |
Other long-term obligations | 0 | 0 | |
Accrued taxes | 0 | 0 | |
Deferred Tax Liabilities, Gross, Noncurrent | (2,658) | (1,711) | |
Liabilities | (2,646) | (12,085) | |
Accumulated other comprehensive loss, net of tax | 0 | 0 | |
Stockholders' equity excluding accumulated other comprehensive loss | (178,444) | (175,301) | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ (181,090) | $ (187,386) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | $ 3,837 | $ 2,600 | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 25,836 | 25,167 | ||
Equity-based compensation expense | 828 | 781 | ||
Deferred tax expense (benefit) | 914 | (240) | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (564) | 648 | ||
Changes in working capital, net | (62,131) | 1,244 | ||
Change in taxes receivable, net | (680) | 1,463 | ||
Other Operating Activities, Cash Flow Statement | 2,561 | (803) | ||
Net cash provided by operating activities | (29,399) | 30,860 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (71,588) | (48,430) | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 768 | ||
Net cash used for investing activities | (71,588) | (47,662) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Investment (to) from Parent | 0 | 0 | ||
Payment of tax withholdings on equity-based payment arrangements | (400) | |||
Proceeds from (Payments for) Other Financing Activities | (716) | (365) | ||
Net cash (used for) provided by financing activities | 90,667 | 13,135 | ||
Proceeds from Short-term Debt | 290,362 | 87,325 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (10,320) | (3,667) | ||
Cash | 12,160 | 12,064 | $ 22,484 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,627 | 13,071 | 24,947 | $ 16,738 |
Repayments of Short-term Debt | 198,979 | 73,825 | ||
Issuer | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 9,988 | 5,399 | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 22,763 | 19,958 | ||
Equity-based compensation expense | 828 | 781 | ||
Deferred tax expense (benefit) | 2,251 | (119) | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (569) | 655 | ||
Changes in working capital, net | (73,447) | 4,661 | ||
Change in taxes receivable, net | 9,669 | 1,462 | ||
Other Operating Activities, Cash Flow Statement | 2,666 | (902) | ||
Net cash provided by operating activities | (25,851) | 31,895 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (71,309) | (47,670) | ||
Payments for (Proceeds from) Other Investing Activities | 761 | |||
Net cash used for investing activities | (71,309) | (46,909) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Investment (to) from Parent | (3,827) | (1,788) | ||
Proceeds from (Payments for) Other Financing Activities | (716) | (365) | ||
Net cash (used for) provided by financing activities | 86,840 | 11,347 | ||
Proceeds from Short-term Debt | 290,362 | 87,325 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (10,320) | (3,667) | ||
Cash | 12,160 | 22,484 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,627 | 13,071 | 24,947 | 16,738 |
Repayments of Short-term Debt | 198,979 | 73,825 | ||
Guarantor Subsidiaries | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 3,143 | 401 | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 3,073 | 5,209 | ||
Equity-based compensation expense | 0 | 0 | ||
Deferred tax expense (benefit) | (1,337) | (121) | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 5 | (7) | ||
Changes in working capital, net | 930 | (3,109) | ||
Change in taxes receivable, net | 37 | 1 | ||
Other Operating Activities, Cash Flow Statement | (105) | 99 | ||
Net cash provided by operating activities | 5,746 | 2,473 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (279) | (760) | ||
Payments for (Proceeds from) Other Investing Activities | 7 | |||
Net cash used for investing activities | (279) | (753) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Investment (to) from Parent | (5,467) | (1,720) | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | (5,467) | (1,720) | ||
Proceeds from Short-term Debt | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||
Cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | |
Repayments of Short-term Debt | 0 | 0 | ||
Eliminations | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | (9,294) | (3,200) | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 0 | 0 | ||
Equity-based compensation expense | 0 | 0 | ||
Deferred tax expense (benefit) | 0 | 0 | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | |||
Changes in working capital, net | 10,386 | (308) | ||
Change in taxes receivable, net | (10,386) | 0 | ||
Other Operating Activities, Cash Flow Statement | 0 | 0 | ||
Net cash provided by operating activities | (9,294) | (3,508) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | 0 | 0 | ||
Payments for (Proceeds from) Other Investing Activities | ||||
Net cash used for investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Investment (to) from Parent | 9,294 | 3,508 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | 9,294 | 3,508 | ||
Proceeds from Short-term Debt | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||
Cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | $ 0 | $ 0 | |
Repayments of Short-term Debt | $ 0 | $ 0 |